Final regulations issued Monday by the IRS modernize the process for the government's sale of taxpayers' property after its seizure by levy (T.D. 10011).

The regulations under Sec. 6335 had not changed substantially since they were first issued

in 1954, the IRS said in a preamble to the proposed regulations (REG-127391-16), issued in October 2023. This meant that several provisions in Regs. Sec. 301.6335-1 did not reflect modern electronic methods of submitting bids and accepting payment from bidders.

The IRS said it made minor, nonsubstantive changes to the proposed regulations before publishing the final regulations.

The final regulations require sales to occur at the time and place noted in the notice of sale, including online. They also allow payment in the manner specified in the notice of sale or related instructions, which can include electronic payments, credit or debit card payments, or other commercially acceptable and IRS-approved means. Previously, the regulations required payment by check or money order.

Similarly, the final regulations allow the minimum amount of a sealed bid to be set by the public notice of sale or related instructions with no minimum bid. In addition, bids may be submitted electronically under the final regulations.

The final regulations also update how the IRS may group items for sale, how the IRS determines winning bids in the case of a tie, and which IRS personnel are involved in sales.

The final regulations apply to sales of property seized on or after Nov. 5, 2024.

— To comment on this article or to suggest an idea for another article, contact Martha Waggoner at Martha.Waggoner@aicpa-cima.com.